A marketing expert named E. Jerome
McCarthy created the Marketing Mix /4Ps in the 1960s. This is a basic
thing for marketing professionals in theory but many entrepreneurs get it wrong
on the ground while executing the plan and face failure. This article will help
you understand the basics of the Marketing Mix. If understood and executed
well, you can deliver what your customers want, when and where they want and at
what price do they want. Bingo … that’s the recipe for success in business. Let’s
get started.
The marketing mix is a
foundation marketing model for businesses. Broadly it refers to the set of
actions or tactics that a company uses to promote its brand or product in the identified
market. The 4Ps – Product,
Price, Place & Promotion, make up a typical marketing mix.
Product: refers to the
item actually being sold or service being rendered. The product or service must
deliver a minimum level of performance; otherwise even the best work on the
other elements of the marketing mix won't do any good. The product can
be intangible or tangible as it can be in the form of services or goods.
Price: refers to the
value that is put for a product or service. It depends on costs of production, targeted
segment, ability of the market to pay, supply - demand and a host of other
direct and indirect factors. There can be several types of pricing strategies,
each tied in with an overall business plan. Pricing can also be used as a
demarcation, to differentiate and enhance the image of a product or service.
Generally adding elements of service to the base product is a great way to
charge some premium or differentiate your product. E.g. FREE installation with
the geyser or AC will definitely attract more customers. Even the assurance of
quality in terms of guarantee can help you charge more.
Place: refers to the
point of sale. In every industry, catching the eye of the consumer and making
it easy for her to buy it is the main aim of a good distribution or 'place'
strategy. Retailers pay a premium for the right location. In fact, the mantra
of a successful retail business is 'location, location, location'.
Promotion: this refers to all
the activities undertaken to make the product or service known to the user and
trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the traders. It can also include consumer schemes,
direct marketing, contests and prizes. Promotion boosts brand
recognition and hence sales. Promotion compromises of – Sales Organization,
Sales Promotion, Advertising & Public Relations.
All the elements of the marketing
mix influence each other. They make up the business plan for a company and
handled right, can give it great success. But handled wrong and the business
could take years to recover. The marketing mix needs a lot of understanding,
market research and consultation with several people, from users to trade to
manufacturing and several others.
Later on with the advent of
Services Marketing as a subject 3 more Ps – Physical Evidence, Process &
People.
With everything available at just the click of a mouse, today’s
consumers are more empowered than ever, with greater expectations for brands to
meet their requirements with relevant, easy-to-use content, and to provide a
product offering that meets expectations.
Marketing is must to sell your products or services and succeed in
this competitive era. In the quest to grow, all entrepreneurs do something or
the other to spread the word. Figuring out the right marketing mix before you
get started on marketing can help you save efforts, time and money.
The marketing mix breaks down what’s needed to make a business
work, but success isn’t attributed only to modeling theory templates like
Marketing Mix. It’s attributed to the depth of insights used to develop each
stage and the excellence of execution.
Businesses that can deliver on what their consumers truly want, and
showcase how their brand will enrich their lives, will see the best results.
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